Aurora Cannabis Inc. and CannaRoyalty Corp. have signed a binding term sheet whereby Aurora is purchasing CannaRoyalty's exclusive Canadian licence to use and commercialize preroll technology developed by Wagner Dimas for an aggregate consideration of $7-million in Aurora common shares. Closing of the agreement is subject to certain conditions, including regulatory approval.

"Prerolls are a rapidly growing, in-demand segment of the international cannabis market and the Wagner Dimas's technology has substantial competitive advantages over peers in terms of throughput, quality and diversity," said Terry Booth, chief executive officer of Aurora. "This agreement reflects Aurora's strategy to continue broadening our high-quality product portfolio by expanding into value-add products for both the medical and adult consumer markets. Wagner Dimas has a proven record of producing many of the leading preroll brands in a number of mature cannabis markets, and we look forward to introducing this high-throughput, high-quality preroll technology to the Canadian market."

Marc Lustig, chief executive officer of CannaRoyalty, added: "The agreement to transfer our Canadian licence to the Wagner Dimas technology aligns with and advances our focused business strategy of building out our distribution and brand network in our core market of California. This successful liquidity event for one of our early investments validates our approach as a strategic investor in the cannabis industry, while at the same time providing us with equity exposure to Aurora's future growth."

Unless otherwise agreed to by both parties, the agreement will be closed within 15 business days of its signing.

About Aurora Cannabis Inc.

Headquartered in Edmonton, Alta., with financed capacity in excess of 430,000 kilograms per year and operations across Canada and in Europe, Aurora Cannabis is one of the world's largest cannabis companies. Aurora Cannabis is vertically integrated and horizontally diversified across every key segment of the value chain, from facility design and engineering, to cannabis breeding and genetics research, cannabis and hemp production, extraction and high-value-add product development, home cultivation, and wholesale and retail distribution.

Highly differentiated from its peers, Aurora Cannabis has established a uniquely advanced, consistent and efficient production strategy based on purpose-built facilities that integrate leading-edge technologies across all processes.

About CannaRoyalty Corp.

CannaRoyalty is a North American cannabis consumer product company currently focused on building a leading distribution business in California, the world's largest regulated cannabis market. By building a world-class logistics platform and supporting contract manufacturing assets, the company intends to support the growth of new and established cannabis brands. The company believes California, home to some of the world's most discerning consumers and a nexus of information and trends, will be the point of inception for the global cannabis brands of the future. CannaRoyalty has developed a diversified portfolio of assets within the cannabis sector, including research, infrastructure and intellectual property to support its existing brands, partner products and distribution networks.